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Insurance Terms Defined – Perils


In this post we’re going to look at a term that is crucial to understanding your home insurance coverage – perils.

Perils refer to the causes of the actual loss. Examples include fire or theft. It is an event that happens by chance, in other words it is not something expected or it is accidental.

It’s important to understand and be aware of perils as they are a cornerstone of your home insurance policy.

While home insurance policies differ widely across the board, they will all include information about perils and what is or is not included in your home’s coverage.

Certain perils are commonly covered in most plans. These include:

  • Fire
  • Theft
  • Vehicle impact
  • Lightning
  • Vandalism

Other perils are often not included in standard home insurance plans. These could include:

  • Flooding or water damage
  • Earthquakes
  • Freezing of indoor plumbing
  • Wear and tear
  • Pollution

Perils can also further be categorized into primary perils versus secondary perils. You can learn more about the distinction in this post, as well as how the surge in secondary peril losses could affect the industry.

The key with perils is having a full understanding of what your particular plan covers. Never assume that a peril is covered because it usually is, or it was on a previous plan that you got from a different provider. Even if you have a comprehensive plan, this does not mean that any and all perils are automatically included. Review your policy carefully or discuss with your broker to get the full details of your coverage. And if you’re wondering if there is perhaps some additional peril coverage that you would benefit from in your specific situation or for your property, talk it through with an insurance expert. Someone from our team would be happy to offer assistance if you’re like some advice – get in touch with us today. Looking for a quote on home insurance? Head over here.

For more on perils, check out the Insurance Bureau of Canada’s page on Insured Perils.

Perils is a term that can also be used in business insurance. Click here to learn more.

Have some other insurance jargon on your radar that you’d like clarified? Check out our blog posts defining common terms and peruse our full glossary of insurance terms here.

We have provided the definitions in this blog post for general information purposes only. They are not meant to be complete descriptions to cover any and all terms, conditions and exclusions that are found in different insurance policies. If there is any inconsistency between this information and the definitions in your policy, it is your policy that governs. Contact your insurance broker if you have any questions or need any clarification about your particular policy and the definitions therein.

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Image source: | Stuart Miles

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